Question

Investment in bonds should be disclosed on the balance sheet on ____________________.

• A. Liability side of balance sheet
• B. Assets side of balance sheet
• C. Both side of balance sheet
• D. None of the above

Answer 1

The correct option is B Assets side of balance sheet

Investments made by a company with a view to retain them for more than 12 months are termed as non current investments. Investments are further classified as trade investment and other investments.

Trade investments are investments made by the company in shares or bonds of another company are treated as trade investment and to be shown in the assets side of the balance sheet.